Viewing statistics on British exporting is a bizarre experience and not one that should fill us with pride. Certainly it is no secret that UK manufacturing has been at a low ebb for many years, but it is still remarkable just how far behind we are when compared to other countries. Research from Grant Thornton showed that only 37% of British companies do any exporting at all, which leaves us bottom of the EU league. Meanwhile, France, Germany, Spain and even Poland are all above 50%, whereas Italy tops the league with 63%. There’s a surprising lack of goods coming out of UK plc and if you take BAE weaponry and Rolls Royce engines out of the equation, there’s very little at all.  So just why are we so bad at exporting?

The high price of the pound make trading tough in some areas and manufacturers don’t have great conditions for trading abroad. Wages are far higher here than in developing nations and there’s a whole generation of people passing through who have never fancied working in a factory. But then the UK is never going to be able to compete with the likes of China or India in terms of mass production. Indeed, European nations that are trying to do so are finding it harder and harder.

The mighty Dragon has come a long way in the past ten years and now is producing increasingly sophisticated goods such as from clothing to furniture and vehicles will be next. Eugene Chan of UKTI and China/Britain told me recently that he expects Chinese cars and vans to be a common sight on UK roads with the next ten years. Countries such as Italy are facing tough competition as the country has learned how to faithfully re-produce materials such as Rayon. However, UK manufacturing which comprises of many very specialised and sophisticated business should still be able to find it niches abroad. The words ‘Made In Britain’ are still associated with good quality while emerging economies, rightly or wrongly, are viewed more suspiciously.

Exporting is a daunting process for businesses but UK entrepreneurs are natural risk takers. Also, exporting is no different from importing in that it is a step into the unknown and as we are happy to buy from abroad then why not sell?

Glyn Powell, of transaction finance firm Fairfax Gerrard, suggested what might be the answer. He says there are many occasions when UK businesses get orders from overseas but are unable to meet demand and has to let the business go elsewhere. Powell criticises the UK government for its lack of support and contrasts our situation with Australia where companies can gain finance based on the profitability of the deal – yes the deal, not the overall credit worthiness of the business.

Placing all our woes at the door of the government isn’t the answer and Powell isn’t suggesting we do. UK businesses really need to broaden their horizons and even if you aren’t thinking of actively pursuing overseas markets there’s little harm being prepared if they come looking for you. So, if you are producing goods that might do well overseas then get thinking about the finance early before you get that big order. And try not to get too jealous of your competitors abroad.